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Wal-Mart Eliminates Two Putnam Funds From 401(k)

The move is another blow to the mutual fund company.

Wal-Mart

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reportedly is dropping two

Putnam

mutual funds from its employee 401(k) plan, dealing another blow to the mutual fund company that has been racked by allegations of improper trading.

Wal-Mart said employees were told this week that the company would no longer add money into Putnam's

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International Equity funds, media reports said.

The company didn't quantify the amount of money Wal-Mart employees had already invested in the funds, or the number of people affected, reports said.

Wal-Mart's decision is the latest bit of bad news for the beleaguered fund manager. Last week, the firm agreed to a federal settlement to pay back investors who were hurt by short-term trading in Putnam funds.

Earlier this week, two west coast pension plans, the $154 billion California Public Employees' Retirement System and the Oregon Investment Council fired Putnam. And on Thursday, drugmaker Merck said it would no longer offer Putnam funds to U.S. employees.